Delivery firms unhappy with postal corp. bills
Most door-to-door parcel delivery companies in the nation remain dissatisfied with a set of bills designed to create a public postal corporation.
Prime Minister Junichiro Koizumi reiterated his determination to have the bills passed to promote private sector entry into the postal service, when speaking at a House of Representatives Committee on Public Management on Tuesday.
However, Keiji Aritomi, the president of Yamato Transport Co. which has abandoned a plan to enter the postal services business, criticized the bills during questioning time in the Diet. He said the bills would create an environment in which private corporations joining the mail delivery business were under the government’s thumb.
So far, none of the nation’s private delivery companies has shown any interest in launching full-scale letter delivery services, but some motorcycle courier companies operating in urban areas have indicated they might offer postal services in limited areas. It therefore remains uncertain if the bills would effectively reform the postal service.
“At least one private company would enter the postal business if we pass the bills,” Koizumi insisted during Tuesday’s discussion.
But private companies have many concerns with the government’s plans for liberalizing the business. In particular, they are worried that the Public Management Ministry, which would be linked to the envisioned public postal corporation, would regulate their operations. They also are concerned that they would be required to publicize their rates in advance.
An official of a private delivery company said, “Even if we come up with an innovative idea for a new service, the government probably won’t approve ideas that might put us in a position of advantage over the public postal corporation.”
Concerns that the government may set strict regulations for private companies entering the industry may lead to the failure of the liberalization plans.
Aritomi said: “Private firms are required to meet strict criteria to be licensed. Creating a select group of government and several private companies is hardly going to lead to greater convenience for customers.”
Meanwhile, some motorcycle delivery companies have shown interest in entering the postal industry.
Three Tokyo-based motorcycle courier companies, Sokuhai Co., Saroute and Bike Kyubin Co. are planning to offer delivery services in areas within a three-hour riding distance of their bases. Osaka-based Actor Inc., which operates in the Kinki region, is considering a similar service.
According to industry sources, the motorcycle courier industry reaps annual sales of more than 21 billion yen.
The industry is fiercely competitive, with more than 100 firms operating in the Tokyo metropolitan area. Therefore companies are counting on a liberalized industry leading to more business opportunities.
Nonetheless, they would be subject to government rules and guidelines that would be decided after the bills had passed through the Diet.
Although companies that begin the three-hour delivery service would not be required to set up post boxes, other regulations may be introduced that would burden them with other costs, which could wipe out their profits.
Private companies are speculating what regulations the government will set if the bills are passed, such as rules that would disallow them from restricting their operations to profitable urban areas.
